KANSAINER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.5

📊 Kansai Nerolac (KANSAINER) shows moderate potential for swing trading. The stock is trading below both its 50 DMA (236 ₹) and 200 DMA (247 ₹), reflecting short-term weakness. RSI at 31.2 indicates oversold conditions, suggesting a possible rebound. MACD remains negative, confirming bearish momentum. Fundamentally, the company has low debt-to-equity (0.03), a reasonable P/E (27.3 vs industry 38.7), and stable dividend yield (1.14%). However, sequential PAT decline (231 Cr. to 137 Cr.) raises caution.

💡 Optimal Entry Price: Around 218–222 ₹ (near support zone, close to 52-week low).

🚪 Exit Strategy: If already holding, consider exiting near 240–250 ₹ (resistance around DMA levels) or if RSI crosses 60 with weakening momentum.

✅ Positive

• 📈 Low debt-to-equity ratio (0.03) ensures financial stability
• 💰 Dividend yield of 1.14% provides steady income
• 📊 Reasonable P/E (27.3) compared to industry average (38.7)
• 📦 EPS of 12.6 ₹ supports earnings base

⚠️ Limitation

• 📉 Stock trading below both 50 DMA and 200 DMA shows technical weakness
• 📊 RSI near oversold but momentum remains negative (MACD -5.39)
• 📉 Weak trading volume compared to average (1,25,700 vs 1,34,863)
• 📊 ROE at 10.4% is modest

🚨 Company Negative News

• 📉 Sequential PAT decline from 231 Cr. to 137 Cr.
• 📊 Slight decline in DII holdings (-0.17%)

🌟 Company Positive News

• 📈 FII holdings increased slightly (+0.21%)
• 💡 Quarterly profit variation of +5.21% year-on-year shows resilience despite sequential decline

🏭 Industry

• 📊 Industry P/E at 38.7, Kansai trades at a discount valuation
• 🏗️ Paints and coatings sector supported by housing and infrastructure demand

📌 Conclusion

⚖️ Kansai Nerolac is a moderately good candidate for swing trading. Fundamentals are stable with low debt and fair valuation, but technical indicators show weakness. A cautious entry near 218–222 ₹ could provide upside potential toward 240–250 ₹. Traders should monitor RSI and MACD closely to confirm momentum reversal before committing to positions.

I can also outline short-term support and resistance zones visually so you can track the swing trade setup more effectively.